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PUC says net‑metering rules are being gamed; calls for legislative fix
Summary
PUC commissioners told the Appropriations Committee that some developers have used net‑metering rules to operate de‑facto merchant generation projects, and that a legislative change would be the cleanest way to restore PUC oversight and set caps after a court struck the commission's earlier cap.
Commissioners said the state’s net‑metering framework has been used by some developers to attach large solar installations to behave like merchant generators, creating outcomes the legislature did not intend and complicating retail billing and interconnection.
Representative Fleming asked whether small businesses were being overcharged under existing net‑metering rules and whether the PUC had tools to address the problem. Chairman DeFrank and other commissioners described cases where arrays were effectively built as merchant generation around a single meter and said the commission’s earlier authority to set a cap was limited by a court decision that removed PUC oversight of parts of the program.
"I think that's the cleanest way is a legislative fix, to address the issue," DeFrank said when asked whether statutes must change to give the PUC clear authority to set net‑metering caps. The PUC earlier set a cap that was later overturned in court, and commissioners said legislation would allow a durable solution rather than repeated litigation.
Why this matters: Net‑metering rules determine how customer‑sited generation (for example rooftop or small‑scale solar) can offset retail usage or sell credits to the grid. When larger projects are routed through net‑metering mechanisms, it can shift costs or administrative burdens and raise questions about fairness to small customers and small businesses.
Next steps: Commissioners recommended legislative clarification to restore or confirm PUC authority to set reasonable caps and prevent avoidance of the regulated interconnection and wholesale processes. The PUC said it can consider interim administrative steps but that a statutory fix would be preferable for durable enforcement and consistent policy.
